GXY

Galaxy Capital Corp. (TSX VENTURE:GXY) (the "Company" or "Galaxy") is pleased to
announce that it has arranged for a non-brokered private placement of 12 million
units at a price of 18 cents per unit. Each unit will consist of one common
share and one transferable eighteen month share purchase half-warrant. Each
half-warrant will be exercisable at a price of 25 cents to purchase one
additional common share of Galaxy. Galaxy intends to use the funds with this
private placement for exploration and development on its graphite exploration
projects in Quebec and for general working capital.


About Galaxy

Galaxy Capital Corp is a publicly traded Canadian exploration company which is
focused on exploring and developing graphite properties, especially in the
Grenville geological province in eastern Canada. In addition, the company is
exploring a highly prospective gold property in northeastern Saskatchewan,
Brownell Lake.


Sun Graphite Property, Quebec

The Sun Graphite property consists of 4,200 hectares, located approximately 145
km by road, north of Baie-Comeau, QC. The property is owned 100% by Galaxy
Capital Corp. The claim block hosts multiple targets for large flake graphite,
initially identified by Outokumpu Mines Inc. in 1998, looking for base metal
mineralization.


The property is located within the Central Metasedimentary Belt of the Grenville
Province of the Canadian Shield. This geological province is characterized by a
high level of metamorphism, critical in the development of coarse flake
graphite. This metamorphism is believed to have occurred approximately one
billion years ago.


Within the property boundary, in excess of 25 km of conductive horizons were
identified from the airborne survey. All of this may be considered prospective
for graphite mineralization.


Buckingham Graphite Property, Quebec

The Buckingham Graphite property comprises two former producing mines, located
just east of Buckingham, QC. They are located in the highly prospective Central
Metasedimentary Belt of the Grenville geological province, host to many active
graphite projects. The host rocks for both deposits are graphitic crystalline
marbles, similar to the host stratigraphy at Timcal's Lac des Iles graphite
mine, currently Canada's only producing graphite mine. The two properties cover
a total of 1,324 Ha on 22 mining.


Graphite Market

Global consumption of natural graphite has increased from approx. 600,000 in
2000 to 1.2 MM t in 2012. Demand for graphite has been increasing by
approximately 5% per year since 2000 due to the ongoing modernization of China,
India and other emerging economies, resulting in strong demand from traditional
end uses such as the steel and automotive industries. Graphite also has many
important new applications such as lithium ion batteries, fuel cells and nuclear
and solar power that have the potential to create significant incremental demand
growth. There is roughly 20 times more graphite required by weight to produce a
lithium-ion battery than there is lithium. Demand for graphite is expected to
rise as electric vehicles and lithium battery technology are adopted as well as
increasing uses in new technology applications.


Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2
million tonnes of graphite produced annually, approximately 40% is of the most
desirable flake type. China, which produces about 73% of the world's graphite,
is seeing production and export growth leveling and export taxes and a licensing
system have been instituted. A recent European Commission study regarding the
criticality of 41 different materials to the European economy included graphite
among the 14 materials high in both economic importance and supply risk
(Critical Raw Materials for the EU, July 2010). Graphite prices have been
increasing in recent months and over the last couple of years prices for large
flake, high purity graphite (+80 mesh, 94-97%C) have more than doubled.


Chris M. Healey, geologist, a Qualified Person as defined by National Instrument
43-101, has reviewed and approved the technical content of this release.


ON BEHALF OF THE BOARD

Chris M. Healey, President and CEO

For further information, please visit the website at www.sedar.com to view the
Company's profile.


We seek safe harbor.

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